3.75% Interest Rate… But What’s The Catch? 

Sterling Homes is offering a 3.75% interest rate to help with your homeownership goals. This offer has benefits but you might be wondering… what’s the catch? Let’s dive deeper into what this offer entails and if it’s right for you!

Sterling Homes is now offering a 3.75% interest rate to help make your dreams of homeownership a reality. This exclusive offer is not for everyone, but it has several benefits that could make it an attractive option for those who have struggled to qualify for a mortgage with their current bank.

At Sterling Homes, we believe in transparency and want to make sure you have all the information you need to make an informed decision. So, let’s take a deep dive into everything this offer entails (including the fine print!) to determine if it’s right for you.


Benefits Overview:

  1. Qualify at the lower stress test: this allows applicants who could not qualify with their current bank to explore a higher purchase amount (i.e. qualify for $80k more with the same income)
  2. Affordability: the applicant requires less household income to meet certain price points (i.e. qualify for the same house with $20k less income)
  3. Upfront savings: there is a cost benefit over the first 6 months with reduced payments

One of the biggest benefits of Sterling Homes’ 3.75% interest rate offer is the ability to qualify for a higher amount with a lower stress test. This means that even if you couldn’t qualify for the amount you need with your current bank, you may be able to do so with Sterling Homes. Additionally, this lower interest rate can make it more affordable for you to purchase a home, as it requires less household income to meet certain price points.

Another advantage of this offer is the upfront savings you can enjoy. Over the first six months, you’ll enjoy reduced payments, which can help ease the financial burden of homeownership.

Who is this offer suited for?

  1. Those who are unable to qualify due to insufficient income
  2. Those who want to be approved for a higher amount/price point
  3. Those who want upfront savings

This offer is best suited for those who are unable to qualify for a mortgage due to insufficient income, those who want to be approved for a higher amount or price point, and those who want to enjoy upfront savings. If you fall into one of these categories, this could be the perfect opportunity for you to make your homeownership goals a reality.

Comparing Qualifying Rates & Payment Differences:

As outlined above, the monthly payments based on a 3.75% mortgage rate compared to 5.15% mortgage rate and as well as the monthly savings. As you can see, there is a substantial amount of savings monthly – but it’s important to note that the 3.75% interest rate is only for a 6-month term – keep reading to get to the fine print!


What is a Stress Test?

The stress test is a regulatory requirement designed to ensure that borrowers can withstand an increase in interest rates that was implemented in 2016. At the time, it only applied to insured mortgages (less than 20% down). As of 2021, it applies to all mortgages and was initiated to ensure that Canadians can afford their payments if rates rise.

How is the minimum qualifying rate determined? The minimum qualifying rate is based on either the Bank of Canada’s benchmark rate of 5.25% or the rate offered by your lender plus 2% – whichever is higher. This means, for example, if your lender offers a rate of 2.50%, you’ll have to use the 5.25% qualifying rate in your stress test. If your lender offers you a rate of 4.50%, you’ll have to use a rate of 6.50%.


Let’s take a closer look at the fine print:

  1. Fees
    • For Mortgages less than $300,000, there is a fee of $1,500
    • For Mortgages ranging from $300,000 – $499,999 there is a fee of $2,000
    • For mortgages ranging from $500,000 – $999,999 there is a fee of $2,500
    • *These are the minimum fee payable. Paid by the borrower and collected at solicitor signing. Direction to pay signed with mortgage approval package
  1. 6-month Term
    • The 3.75% interest rate is a 6-month term. The goal is to help borrowers get approved by the stress test at a lower rate. After the 6-month term, the borrower must renew. More details in the next point
  2. Mortgage Renewal & Penalties:
    • The borrower must renew with the lender for the next 5-year term. A 1% penalty applies if exiting the term after 6 months.
  3. Purchase must be made within 120 days
    • This offer is designed for quick possessions home and the purchase must be made within 120 days.
  4. Not available for rental purchases or draw mortgages
    • This offer is not eligible for investment properties or draw mortgages.

*Additional terms may apply. The promotion may end at any time without prior notice. Speak to an area manager for complete details. 

How do I take advantage of this offer?

In conclusion, Sterling Homes’ exclusive 3.75% interest rate offer is a fantastic opportunity for those who want to make their dreams of homeownership a reality. With the ability to qualify for a higher amount with a lower stress test, affordability, and upfront savings, this offer is a win-win for those who are looking to buy a home.

Don’t miss out on this great opportunity. If you’re ready to take the first step towards homeownership, contact Sterling Homes today to learn more about this exciting offer and start your journey. With their commitment to transparency and customer satisfaction, you can trust that you’re in good hands with Sterling Homes. Don’t wait – take control of your future and start your path to homeownership today!

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